AB InBev, the largest brewery company after its merger, said its gross income for the third quarter of the year rose by 2.8%.
Revenue grew by 2.8% in 3Q16, and by 3.3% in 9M16. Revenue per hl grew by 3.8% in the quarter, with the benefits of our revenue management and premiumization initiatives being partly offset by results in Brazil. On a constant geographic basis, revenue per hl grew by 3.7% in 3Q16. Revenue per hl grew by 4.8% in 9M16 and by 4.4% on a constant geographic basis
Total volumes declined by 0.9% in 3Q16, with our own beer volumes down by 0.2%. The decline in own beer volumes was due mainly to a decline of 4.1% in Brazil, as a result of a weak industry and tough 3Q15 comparable, partly offset by good volume growth in Mexico. In 9M16, total volumes declined by 1.4%, with own beer volumes down by 0.7%.
The company said its combined revenues of our three global brands, Corona, Stella Artois and Budweiser, grew by 8.7% in the quarter. This result was led by Corona with growth of 14.8%, while Stella Artois grew by 12.2%. Budweiser was up 4.8% in the quarter. In 9M16 the combined revenues of our global brands increased by 7.8%
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Cost of Sales (CoS): CoS increased by 3.9% in 3Q16 and by 4.9% on a per hl basis, driven by unfavorable foreign exchange transactional hedges in Brazil, partly offset by good results in the US. On a constant geographic basis, CoS per hl increased by 5.3% in 3Q16. In 9M16 CoS grew by 2.2% and by 3.7% on a per hl basis. On a constant geographic basis, CoS per hl increased by 3.3% in 9M16
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EBITDA declined by 2.0% in 3Q16 to 4 032 million USD, driven by a very weak result in Brazil. EBITDA margin decreased by 178 bps to 36.3% in 3Q16. In 9M16, EBITDA grew by 1.5%, with EBITDA margin decreasing by 65 bps to 36.7%
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Net finance results: Net finance costs (excluding non-recurring net finance costs) were 1 226 million USD in 3Q16 compared to 810 million USD in 3Q15. This increase was driven primarily by the additional net interest expenses resulting from the bond issuances in 1Q16, related to the pre-funding of the SABMiller combination. Net finance costs were 3 171 million USD in 9M16 compared to 1 273 million USD in 9M15
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Income taxes: Income tax in 3Q16 was 225 million USD with a normalized effective tax rate (ETR) of 11.7%, compared to an income tax expense of 795 million USD in 3Q15 and a normalized ETR of 26.8%. Normalized ETR in 3Q16 was positively impacted by the reporting of previously unrecognized deferred tax assets on carried forward losses, and a reversal of deferred tax liabilities following a change in tax law in Argentina. Normalized ETR was 18.2% in 9M16 compared to 20.5% in 9M15
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Profit: Normalized profit attributable to equity holders of AB InBev was 1 363 million USD in 3Q16 compared to 1 673 million USD in 3Q15, driven by the organic decline in EBITDA, higher net finance results and unfavorable currency translation, partly offset by lower income taxes. Normalized profit attributable to equity holders of AB InBev was 3 934 million USD in 9M16, compared to 5 952 million USD in 9M15
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Earnings per share: Normalized earnings per share (EPS) decreased to 0.83 USD in 3Q16 from 1.02 USD in 3Q15, and decreased to 2.40 USD in 9M16 from 3.63 USD in 9M15
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Interim Dividend: The AB InBev board has approved an interim dividend of 1.60 EUR per share for the fiscal year 2016. Details of ex-coupon, record and payment dates are shown on page 15
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Combination with SABMiller: On 10 October we announced the successful completion of the combination with SABMiller. We extend a warm welcome to our new colleagues and look forward to working with them to ensure a smooth integration
